Reviewing Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) & Stora Enso Oyj (OTCMKTS:SEOAY)

Stora Enso Oyj (OTCMKTS:SEOAY) and Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) are both mid-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Volatility and Risk

Stora Enso Oyj has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Kimberly-Clark de Mexico SAB de CV has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Profitability

This table compares Stora Enso Oyj and Kimberly-Clark de Mexico SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stora Enso Oyj	4.34%	0.83%	0.47%
Kimberly-Clark de Mexico SAB de CV	14.09%	179.50%	15.12%

Dividends

Stora Enso Oyj pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.57 per share and has a dividend yield of 5.4%. Stora Enso Oyj pays out 17.9% of its earnings in the form of a dividend. Kimberly-Clark de Mexico SAB de CV pays out 76.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Stora Enso Oyj and Kimberly-Clark de Mexico SAB de CV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stora Enso Oyj	2	1	1	0	1.75
Kimberly-Clark de Mexico SAB de CV	0	3	0	0	2.00

Valuation & Earnings

This table compares Stora Enso Oyj and Kimberly-Clark de Mexico SAB de CV”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stora Enso Oyj	$10.55 billion	0.79	$786.32 million	$0.56	18.83
Kimberly-Clark de Mexico SAB de CV	$2.89 billion	2.23	$395.75 million	$0.75	13.95

Stora Enso Oyj has higher revenue and earnings than Kimberly-Clark de Mexico SAB de CV. Kimberly-Clark de Mexico SAB de CV is trading at a lower price-to-earnings ratio than Stora Enso Oyj, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

0.0% of Stora Enso Oyj shares are held by institutional investors. 8.1% of Stora Enso Oyj shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Kimberly-Clark de Mexico SAB de CV beats Stora Enso Oyj on 8 of the 15 factors compared between the two stocks.

About Stora Enso Oyj

Stora Enso Oyj is a Finnish-Swedish forest industry company that develops and produces renewable materials and products. Its businesses include packaging materials and solutions, biomaterials, wood products and forest management. The company also supplies pulp and other materials for industrial and consumer uses. Stora Enso serves customers in markets around the world, with operations and forest assets in several countries. Its roots include the Swedish company Stora and Finland’s Enso, which merged in 1998.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S.A.B. de C.V. manufactures and markets personal care and household paper products. Its offerings include diapers, feminine care and adult incontinence products, as well as bathroom tissue, facial tissue, paper towels and napkins. The company sells products under brands including Huggies, Kleenex, Kotex, Depend, Pétalo and Suavel. Its products serve consumers and institutional customers, including businesses and other professional users. Founded in 1925, Kimberly-Clark de México serves the Mexican market and also exports products to other countries in the region.